Threats and opportunities

At his inaugural presidential address, Terry Wyatt delivered one of the most significant messages this industry has heard in the past decade. His speech was a wake up call to the building services industry, and reflects the theme for his presidential year: adapt or die.

Wyatt acknowledges the important role CIBSE members have to play in today's construction industry. But he also warned that there are threats on the horizon: "I would not be doing my job at CIBSE this year if I did not spell out what I see as trouble ahead. I will argue that unless we respond positively to our changing world, and some key trends now emerging, and step up the speed of our ability to use knowledge, CIBSE as an organisation may not exist as a substantial member organisation in the year 2020."

The new president believes that the core business of building services consultancies is being eroded. "Why use a consultant, then a contractor to calculate the heating, cooling and lighting needs of a building, and then to make installation drawings, and specify the equipment needs?" Wyatt pointed out that new software can already do these jobs, price the work and transfer detailed requirements to manufacturers. "Believe me," stated Wyatt, "this is already happening."

So what are the trends which are having such a major effect on our industry? Firstly, globalisation. Competition and new methods of working from the USA and Japan among others, will affect the UK soon. These new approaches will lead to cost cutting within the construction process – threatening the already narrow margins which most consultants work on today.

Standardisation is leading to entirely different technologies gaining greater influence on building methods. Computer-made design and off-site factory construction for quick assembly on site will become mainstream.

Climate change, and the emergence of a carbon management market will also have profound changes on the economics of energy and materials use on buildings. And finally, rising concerns about health and productivity of occupants will also affect design, as will the already increased concerns about security.

Wyatt believes consultants and manufacturers should be aware of these trends now, and acting accordingly. He calls for far greater investment in research and development. "In our industry we simply don't invest enough in r&d compared to competitors." He added that: "I believe quite simply that any company that is unwilling or unable to invest in adequate r&d to develop new products and techniques is doomed, and has little chance of making a living in the next five to ten years."

Wyatt cites some manufacturers who are making the investment in research, and reaping the rewards: SAS International; Colt; and Nuaire. "We all need our companies to be like these if we are to be a viable industry."

In spite of these warnings, Wyatt offered an optimistic view of opportunities on the horizon. Climate change is one of these and according to Wyatt: "The building services industry has a major opportunity to be at the forefront of carbon management within buildings." Wyatt estimated the value of carbon emissions to be managed by 2010 could be around £250 million. He added:"We need to be ahead of the game, like progressive councils such as Merton Borough Council which has adopted a positive planning stance on self-generation within commercial buildings."

Wyatt does not foresee the demise of the services engineer, but the birth of a new type who has embraced new working methods. Tasks which Wyatt highlighted as being the work of tomorrow's engineer include preparing briefs and concepts for buildings; building information modelling; offsite commissioning, testing and proving of modules; carbon management planning implementation, monitoring and trading.

Wyatt sees engineers taking a lead by building relationships and identifying new roles within those relationships. "We need to be involved in building concept design, and making the building work over its lifetime." For CIBSE this means closer working relationships with RIBA and RICS, and taking a leading role in the Construction Industry Council. "We cannot be passive or reactive in this process," said Wyatt.

Building services could potentially have a very bright future, but those in the industry have to act now to hang onto that vision before it slips out of view: "Adapt quickly and our future is only limited to the horizons we set. But fail to adapt and we, with 150 years of heritage, will fast fade into obscurity."